Indicate Whether Each of the Following Costs of a Cabinet

question 33

Essay

Indicate whether each of the following costs of a cabinet manufacturer would be classified as direct materials cost, direct labor cost, factory overhead cost, or period cost.
a. Plant manager's salary
b. Office administrative assistant's salary
c. Depreciation on factory equipment
d. Rent on office building
e. Varieties of wood
f. Varnish for coating cabinets
g. Utilities cost on the factory
h. Cabinet assembly worker's salary
i. Advertising costs
j. Screws and glue used in assembly process

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Definitions:

Laissez-Faire Capitalism

Laissez-Faire Capitalism is an economic system where private parties are free from government intervention like regulations, privileges, tariffs, and subsidies, with property rights upheld.

Economic Systems

Organized methods societies use to distribute goods and services, including capitalism, socialism, and mixed economies.

Factors of Production

The resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.

Coordinate Economic Activity

The process of organizing and managing various facets of the economy to ensure efficient and effective functioning.